1988 (7) TMI 51

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....sfer occurred on November 30, 1977. An assessment was made on the transferor in respect of the agricultural income for the years 1975-76 and 1976-77. This was for the period prior to the date of transfer. The assessment was made after due notice to the assessee. However, recovery proceedings were initiated against the petitioner in his capacity as the transferee for the taxes due from the assessee....

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.... the property of the petitioner who is the transferee, the petitioner is entitled to be heard before recovery can be had by attachment and sale of the property. Section 23 reads : "23. Assessment in case of transfer of right in land.-Where a person in receipt of agricultural income from any land in the State is found to have transferred his interest in such land to another person, the transf....

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....rial here, has two limbs. The first limb provides for assessment being made on the transferee when the transferor cannot be found. In the present case, there has been no such assessment on the transferee, apparently because the Department has no case that the. transferor could not be found. But proceedings are initiated for recovery by attachment and sale of the transferred property, probably beca....

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....before tax is recovered from him that such an attempt was made to recover the tax from the transferor from whom it was due, but .then it could not be recovered. The transferee must then have a due opportunity to contest the claim of the Department by pointing out that the transferor is in a position to pay. Such a contention of the transferee must be considered by the Department and, if not found ....